Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Solid US jobless claims

While you were sleeping: Solid US jobless claims

March 7 (BusinessDesk) – Wall Street climbed, pushing the Standard & Poor’s 500 Index to a fresh record high, after better-than-expected US jobs data bolstered optimism about the pace of recovery in the world’s largest economy.

Initial jobless claims dropped by 26,000 to 323,000 in the week ended March 1, according to Labor Department data.

"Initial claims returned to a more normal level, consistent with a healthy labour market turnover," said Yelena Shulyatyeva, an economist at BNP Paribas in New York, told Reuters.

The latest data underpinned optimism for the government’s employment data, scheduled to be released on Friday morning in Washington. Companies added 150,000 workers in February, according to separate surveys of economists by Bloomberg News and Reuters.

Philadelphia Federal Reserve Bank President Charles Plosser said he believed the US economy was “continuing to improve at a moderate pace,” adding that he expects growth of about 3 percent this year.

“Prospects for labour markets will continue to improve, and I expect the unemployment rate will continue to decline, reaching 6.2 percent or lower by the end of 2014,” Plosser said in a statement of his talk at the Official Monetary and Financial Institutions Forum in London, the UK.

“On monetary policy, we must back away from increasing the degree of policy accommodation in a manner commensurate with an improving economy,” Plosser said. “Reducing the pace of asset purchases in measured steps is moving in the right direction, but the pace may leave us well behind the curve if the economy continues to play out according to the FOMC forecasts.”

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.52 percent, the Standard & Poor’s 500 Index gained 0.37 percent, while the Nasdaq Composite Index advanced 0.17 percent. Earlier the S&P 500 climbed to a record high 1,881.94.

Shares of Caterpillar and JPMorgan Chase gained, last up 1.8 percent and 1.2 percent respectively, leading the increase in the Dow.

So far in 2014, the S&P 500 has added 2.2 percent, while the Nasdaq has risen 4.8 percent. The Dow has lost 0.3 percent in the same period.

In Europe, the Stoxx 600 Index edged higher to close at 337.28. The gauge, which has fallen 0.2 percent so far this week amid tension over Ukraine, is 0.3 percent away from a six-year high reached February 25, according to Bloomberg News.

The UK’s FTSE 100 rose 0.2 percent, while France’s CAC 40 added 0.6 percent. German’s DAX finished the session little changed from the previous close.

The European Central Bank maintained its benchmark interest rate at a record low 0.25 percent, as had been expected by most economists and forecast a gradual increase in inflation.

“The news that has come out since the last monetary policy meeting are by and large on the positive side,” ECB President Mario Draghi told reporters in Frankfurt on Thursday, according to Bloomberg. He said while there were political risks to what was happening in Ukraine, it was too early to say, except for Russia, what the global economic impact would be.

Meanwhile the Bank of England kept its key rate at 0.5 percent and its bond-buying plan at 375 billion pounds.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news